EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR rose 0.46% against the USD and closed at 1.1126.
On the macro front, Euro-zone’s seasonally adjusted construction output fell of 0.5% on a monthly basis in August, less than market expectations for a drop of 0.8%. Construction output had recorded a revised decline of 0.2% in the previous month.
The US dollar declined against its major peers, amid dismal economic data
In the US, data showed that the Philadelphia Fed manufacturing index eased to a level of 5.6 In October, more than market expectations for a fall to a level of 8.0. In the previous month, the index had registered a reading of 12.0. Also, the US housing starts plunged 9.4% on monthly basis, to an annual rate of 1256.0K in September, falling from a 12-month high level and more than market forecast for a drop to a level of 1350.0K. In the previous month, housing starts had recorded a revised reading of 1386.0K. Additionally, industrial production fell by the most in five months by 0.4% in September, compared to a revised rise of 0.8% in the prior month. Market participants had anticipated industrial production to register a drop of 0.1%. Further, manufacturing production eased 0.5% on a monthly basis in September. Manufacturing production had recorded a revised gain of 0.6% in the prior month.
Meanwhile, the nation’s building permits dropped 2.7% on monthly basis, to an annual rate of 1387.0K in September, less than market consensus for drop to a level of 1350.0K. Building permits had registered a revised level of 1425.0 K in the prior month. Also, seasonally adjusted initial jobless claims advanced to 214.0K in the week ended 11 October 2019, less than market forecast and compared to a level of 210.0K in the previous week.
In the Asian session, at GMT0300, the pair is trading at 1.1124, with the EUR trading a tad lower against the USD from yesterday’s close.
The pair is expected to find support at 1.1079, and a fall through could take it to the next support level of 1.1035. The pair is expected to find its first resistance at 1.1154, and a rise through could take it to the next resistance level of 1.1185.
Amid lack of economic releases in the US today, traders would keep an eye on Euro-zone’s current account balance for August, set to release in a few hours.
The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.
